Preparing for Economic Depression

Consumers are worried about our financial future.  One does not have to be an financial guru to realize the shaky condition of our economy. Daily news items cover bankruptcy of large corporations, job layoffs, declining stocks, home foreclosures, rising prices, and shrinking retirements.  Some say it will get worse before it gets better.  Although no one can accurately predict if we are in for a mild recession or a dire depression, planning and preparing are wise moves.

Ideas for preparing range from building bomb shelters and stocking up on food and guns to making simple budget cuts.  Perhaps a few changes somewhere in the middle make the most sense at present.

• Write up a budget and trim the fat.  This 'fat' can be used to pay off debt or be socked away in savings for when money gets tighter.
• Downsize your home. This will help with payments and taxes as well as utility bills.
• Downsize your car. A new car is used once it's driven off the lot.  Buy several years old and save money.  Better yet, pay cash and avoid finance charges.
• Compare insurance company premiums.
• Do as much of your own work as you can, such as trimming your own hair, mowing your own lawn, doing repairs, etc.
• Stop eating out and cook more staples at home such as beans, rice, cornbread, and vegetables.  Look for old fashioned recipes.  These are usually the best and most nutritious anyway.  Avoid processed and fancy packaged foods.
• Learn to garden and grow as much of your own food as possible.
• Stock up a 3 month supply of staple foods such as beans, rice, and canned goods.  Use coupons and replenish it as it is used.  As prices rise, you will be drawing from your pantry of purchases at lower prices.
• Limit entertainment to free things.  Make use of the library for books and videos.  Take a walk in the park.  Go to a parade.  Make popcorn and koolaid and invite friends over to play board games or a ball game. Pick up a used musical instrument at a garage sale and learn to play it.
• Look into ways to reduce your utility bills and phone bills. Learn to use cell phones for emergencies only.
• Shop thrift stores for clothing.  The second time you wear a new outfit that you paid full price for, it becomes used anyway.
• Watch Freecycle posts.
• Learn to barter for services and goods.

When tough economic times strike, we must be prepared to do without the trimmings and appreciate a good old fashioned simple meal, sitting under a tree reading a good book, or a game of checkers with the family.  Simple pleasures really are life's greatest treasures.